LOCATION
The Daandine project is located in the Surat Basin, 40km west of Dalby in south-east Queensland.

EQUITY
Arrow Energy 100%

FIRST GAS
The Daandine Project produced first gas in September 2006.

GAS CONTRACTS
Arrow supplies 2.2 PJ/year of gas to the Daandine Power Station under a gas tolling agreement with APA Group. This agreement allows Arrow to off-take electricity for sale to Country Energy under a long-term power purchase agreement. Arrow also has a 12-year contract to supply 11.5 PJ/year to the Braemar 2 Power Station from the Daandine field and the Stratheden field.

GAS PRODUCTION
Total production at Daandine for the year ended 30 June 2010 was 7.90 PJ, a 97.2 percent increase compared to the prior year. Total production for the quarter ended 30 June 2010 was 2.55 PJ.

RESERVES
Reserve certifiers Netherland, Sewell and Associates Inc. (NSAI) of Dallas, Texas have confirmed a sizable reserves base at the Daandine field with the certification resulting in 1P, 2P and 3P gross reserves of 73 PJ, 317 PJ and 319 PJ respectively.

PRINCIPLE EXPLORATION TARGETS
Walloon Coal Measures CSG